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Alberta home building industry has been ‘crippled’: builders

BILD Alberta — a unified voice for the land development, home building and renovation industry — said the industry has been crippled by fewer residential construction jobs, less affordable homes and uncertainty surrounding proposed legislation.

The association says the impacts have been far-reaching across Alberta, with some companies reducing their staff by 15 to 20 per cent in recent years.

On Wednesday, industry leaders gathered in Edmonton to discuss the issues.

BILD Alberta CEO Cameron Wyton said Alberta is experiencing a historic high in vacant new homes on the market and a 10-year low in housing starts.

“This means, there are far fewer homes to be built, resulting in a considerable drop in the number of jobs,” she said.

“It’s difficult to estimate the overall impact, however, even conservatively, five to 10 per cent reduction in that workforce means thousands of Albertans are out of work.”

Avalon Master Builder CEO Ryan Scott said his company cut about 20 per cent of its staff in the last three years, and last week, Jayman Built cut more than 15 per cent of its workforce.

Jayman Built CEO Jay Westman said the company is in a cycle of over-supply and under-demand which is “being driven by the current political landscape and the policies that have affected the primary driver of the western economy, which is energy.

Wyton also suggested new building costs being proposed by the province will hurt.

“We know that every increase of $10,000 will put 20,000 Albertans out of the housing market. They won’t be able to afford the home they thought they were going to have,” she said.

Housing starts slumped 22 per cent from this past September to October, and they dropped 49 per cent year over year.

“We always want to be positive and be looking forward to growth and the future, and really over the last little bit, it’s been a struggle. We’re always planning for the worst, rather than planning for the uptrends, the growth,” BILD Alberta director Greg Nakatusi said.

“We’re entering 2019 really just trying to hope for something to stay steady for a change rather than look for that growth.”

CMHC, Canada’s national housing agency, is forecasting Alberta’s housing market will be flat in 2019.

Recent data from The Calgary Real Estate Board suggested overall home sales declined almost 10 per cent in October across Calgary, with detached home sales down to levels not seen since the late 1990s.